ASML Holding NV's stock surged 9.31% during intraday trading on Wednesday, marking a significant upward movement for the semiconductor equipment manufacturer.
The sharp rise follows news that President Trump agreed to a two-week cease-fire with Iran if the Strait of Hormuz is reopened. This key waterway is critical for transporting helium, which is essential in the manufacturing of artificial-intelligence chips. The potential reopening alleviates recent supply chain constraints that had affected the semiconductor industry, leading to broad gains across European chip stocks.
Additionally, ASML benefits from the ongoing strength of the AI supercycle, which continues to fuel robust demand for advanced semiconductor manufacturing equipment. The company's dominant position as the sole provider of Extreme Ultraviolet (EUV) lithography systems, critical for producing cutting-edge AI chips, places it at the center of this industry expansion. Analyst sentiment remains largely optimistic, with Bernstein maintaining a Buy rating and a €1,700 price target on the stock.
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